Majority of South Koreans express favorable views towards trade agreement with U.S., according to survey findings
The recently agreed-upon trade deal between South Korea and the United States, known as the 2025 agreement, has been met with a positive response from the majority of South Koreans, according to a recent poll.
The deal, which lowers tariffs on South Korean exports to the U.S., has been hailed as a significant step forward by over 67% of the respondents, who also noted that the government made efforts in the negotiations.
One of the key achievements of the deal, as pointed out by 17.4% of respondents, is the $150 billion investment in the U.S. shipbuilding industry. Another 23.2% of respondents cited the exclusion of sensitive items, such as rice and beef, from the deal as the main achievement.
The tariff reduction is expected to catalyze growth in export-linked sectors, with potential monetary easing by South Korea's central bank (BOK) to support expansion in these industries. The deal lowers tariffs on South Korean exports from 25% to 15%, which stabilizes crucial industries such as automotive and semiconductors and boosts competitiveness for firms like Hyundai and Samsung.
However, challenges remain despite tariff cuts. Ongoing agricultural trade restrictions, inflationary concerns, and contentious rules of origin, particularly related to Chinese goods transshipped through third countries like Vietnam, are some of the issues that need to be addressed.
The automotive sector will benefit but full access remains a negotiation point, as auto imports relate closely to U.S. industrial policy goals. The deal highlights limited but meaningful opportunities for increasing South Korean auto exports to the U.S., though some restrictions, e.g., the U.S. limiting vehicle numbers, persist.
The deal also includes a commitment from South Korea to purchase $100 billion worth of American liquefied natural gas and other energy products over the next four years. Seoul pledged to invest $350 billion in the US as part of the trade deal.
The poll, conducted by Realmeter on 1,016 adults aged over 18 on Friday, has a margin of error of plus or minus 3.1 percentage points at a 95% confidence level. According to the survey, 63.9% of South Koreans view the trade deal positively, while 32.3% have a negative view.
In conclusion, the trade deal provides a significant tariff cut and partial easing of trade tensions, particularly benefiting export-driven sectors while leaving some contentious issues unresolved, which may continue to influence future negotiations. The deal is expected to boost economic momentum in South Korea, with growth anticipated at around 1% in 2025, underpinned by the trade deal and supportive domestic policies.
The 2025 agreement, a trade deal between South Korea and the United States, has sparked discussions beyond the agreed-tariff reductions and investment commitments. The general-news landscape is filled with political debates about the exclusion of certain items, such as rice and beef, and the rules of origin, particularly concerning Chinese goods, which are key aspects of the deal. Furthermore, the deal's impacts on industries like automotive, with both benefits and remaining negotiation points, are also subjects of intense general-news and political scrutiny.
